Annual report 2017

2017 ANNUAL REPORT Železiarne Podbrezová a.s. 15 In 2017, a recertification audit according to ISO 9001:2015 and a supervision audit according to ISO TS 16949:2009 were performed as part of the quality management system at Železiarne Podbrezová a.s. Both audits were successful and we retained our certificates, which showed that the production processes are verified and in compliance with the requirements specified in the relevant standards. We also passed the supervision audits of the environmental management system under EN ISO 14001:2004 and of the occupational safety management system under OHSAS 18001. In 2017, we sold products, goods and services totalling EUR 238 613 thousand to our customers, of which almost 89% were exported. Revenues increased by EUR 48 817 thousand (25.7%) compared to the previous year. The significant growth in revenues from sales was mainly due to a higher sold volume of steel billets at higher prices, which reflected the higher costs of raw materials, a significant increase in the sales of seamless rolled tubes and their prices (by almost 9%). The increase in revenues sales was also driven by higher sales (by 11.5%) and higher prices (by almost 4%) of precision tubes. The geographical structure of sales in 2017 did not change significantly compared to previous years. The main market segment continued to be EU Member States in the following order of importance: Germany, Czech Republic, Poland, Italy and Slovakia. There were no significant changes compared to previous years as regards the sectors in which our products were used. They are primarily used in the production of machinery and equipment (43-44%), the energy industry (24-38%), hydraulic equipment, the automotive industry, and oil and gas transportation. Changes in total sales by geographical structure (revenues in EUR ’000) 2013 2014 2015 2016 2017 Slovakia 24 602 30 008 30 293 27 422 26 301 Czech Republic 43 526 41 187 34 741 22 637 31 601 Other EU Member States 142 936 144 671 137 014 122 278 156 718 Other European countries 11 120 11 366 9 024 10 586 13 471 USA 9 011 8 925 6 484 5 058 8 523 Other export 3 142 4 054 4 180 1 815 1 999 Total sales 234 337 240 211 221 736 189 796 238 613 Application of tubes in 2017 Precision cold-drawn tubes Seamless hot-rolled tubes 24 13 15 17 38 3 3 43 44 % % % % % % % % % Power generation Power generation Hydraulics & pneumatics Transport of flammable media Automotive industry Construction industry Other sectors Mechanical engineering Mechanical engineering REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2017 AND INFORMATION ON THE BUSINESS PLAN